Salesforce.com, a US-based provider of enterprise cloud computing solutions, recently announced that it had purchased cloud-based word-processing application, Quip, for $582 mn. The acquisition is part of the company’s strategic initiative to expand product offerings beyond basic customer relationship management and into cloud-based services and apps. By adding Quip, Salesforce can broaden its presence in the cloud space by integrating content and communication solutions to its offerings, while Quip can broaden its reach to a wider network of customers.To note, earlier, Salesforce completed the $2.8 bn acquisition of a digital payment platform Demandware. The deal is also expected to add significant value to Salesforce's existing portfolio. Not only will it enhance the process efficiency of both the companies, but will also improve the CRM platform’s efficiency in handling sales, marketing and service functions. Demandware’s digital marketing capability will enable Salesforce to create a strong marketing platform. The deal will boost Salesforce’s competitive advantage and help the company grab a significant market share from traditional software providers such as Oracle and SAP, both of which already offer cloud-based e-commerce services. On the whole, the buyout is expected to help Salesforce cash in on the opportunities in the digital e-commerce marketing space.Salesforce’s financials for its fiscal 2017 first quarter were strong, with both top and bottom line exceeding consensus estimates. Revenues increased 27% y-o-y driven by rapid adoption of the company’s cloud-based solutions. During the quarter, Salesforce’s products were selected by a number of companies including Amazon, Uber, Samsung, New York Life and several other leading companies in Europe. Operating margin improved 240 basis points, and adjusted earnings per share surged four-fold to 8 cents. Solid FQ1 results also allowed Salesforce to raise its full fiscal year 2017 guidance. Salesforce plans to post FQ2 financials on August 29, and I believe the company will be able to positively surprise investors againShares of Salesforce are trading above $80 support level as well as 50-day moving average. I expect the stock to continue to rise, with medium-term target at $90. $CRM, Salesforce, Inc. / 1440